Jump to content

Market update: GBP slides ahead of BoE rate decision

Recommended Posts

The British pound made new lows last week and momentum might be building; the Bank of England is anticipated to lift rates later this week by 25 basis points, while sterling is staring at some untested support levels.


original-size.webpSource: Bloomberg


Daniel McCarthy | Strategist, | Publication date: Monday 18 September 2023 05:55

GBP/USD technical analysis

The British pound has slipped to its lowest level in three months ahead of the Bank of England (BoE) monetary policy decision this Thursday. Interest rate markets see around an 80% chance of a 25 basis point (bp) hike to lift the cash rate to 5.50%, the highest level since prior to the financial crisis in 2008.

If the bank surprises markets with anything other than 25 bp of tightening, sterling volatility might kick off.

GBP/USD made a low at 1.2379 on Friday and finished the week near there without testing potential support at the early June low of 1.2369. It has steadied so far on Monday but might be vulnerable after closing below the 200-day simple moving average (SMA).

The 200-day SMA may offer resistance ahead of the breakpoints at 1.2445, 1.2550 and 1.2620. Above there, the prior peaks at 1.2746, 1.2800 and 1.2819 may offer resistance. Resistance could also be near the high at the psychological level of 1.3000, which concurs with a historical breakpoint.

Further up, the 16-month high of 1.3142 is also just below some breakpoints in the 1.3150 – 1.3160 area and may offer a resistance zone.

A bearish triple moving average (TMA) formation requires the price to be below the short-term SMA, the latter to be below the medium-term SMA and the medium-term SMA to be below the long-term SMA. All SMAs also need to have a negative gradient.

When looking at any combination of the 10-, 21-, 55- and 100-day SMAs, the criteria for a TMA have been met and might suggest that bearish momentum is evolving. Support could be at the previous lows and breakpoints at 1.2369, 1.2308, 1.2270, 1.2148, 1.2011 and 1.1804.

GBP/USD daily chart


original-size.webpSource: TradingView

EUR/GBP technical analysis

EUR/GBP has traded between 0.8493 and 0.8701 for four months in what appears to be a range trading environment. The 10-, 21-, 34-, 55- and 100-day SMAs are all grouped together between 0.8572 and 0.8607, which may confirm a lack of direction for EUR/GBP.

If the price has a meaningful move away from either side of that range a breakout trade opportunity may evolve. To learn more about breakout trading, click on the banner below. Support might be at the prior lows and breakpoints of 0.8524, 0.8504, 0.8493, 0.8486 and 0.8481.

On the upside, the 100-day SMA might be pivotal for direction. It was tested on two occasions in July and August and was briefly breached a few times last week before retreating back below it. A sustained move above it could see bullish momentum evolve. Further up, resistance might be at the previous peaks at 0.8630, 0.8669, 0.8701 and 0.8735.

EUR/GBP daily chart


original-size.webpSource: TradingView




This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • Binance റഫറൽ കോഡ് "ZNKAUKP3" എന്നത് ലോകത്തിലെ ഏറ്റവും വലിയ ക്രിപ്‌റ്റോകറൻസി പ്ലാറ്റ്‌ഫോമിലെ ഉപയോക്താക്കൾക്ക് അവരുടെ ഇടപാടുകളിൽ കൂടുതൽ നിയന്ത്രണം നേടാനും അവരുടെ ചലനങ്ങളുടെ വിശദമായ റെക്കോർഡ് നേടാനും ആഗ്രഹിക്കുന്ന ഒരു അത്യാവശ്യ ഉപകരണമാണ്. ബിനാൻസ് എക്സ്ചേഞ്ചിൽ, റഫറൽ കോഡിനും റഫറൽ ഐഡിക്കും ഒരേ അർത്ഥമുണ്ട്. നിലവിൽ, ബിനാൻസ് റഫറൽ ഐഡി "ZNKAUKP3" ആയി ഉപയോഗിക്കുന്നു. 20% കമ്മീഷൻ കിഴിവ് നിരക്കുള്ള, ആജീവനാന്ത സാധുതയുള്ള, ലോകത്ത് ഏറ്റവും കൂടുതൽ ഉപയോഗിക്കുന്ന Binance റഫറൽ ഐഡിയാണിത്. മത്സര നേട്ടം പുതിയ നിക്ഷേപകരെ ആകർഷിക്കുന്നതിനായി ക്രിപ്‌റ്റോകറൻസി എക്‌സ്‌ചേഞ്ചുകൾ റഫറൽ, അഫിലിയേറ്റ് പ്രോഗ്രാമുകൾ നടപ്പിലാക്കിയിട്ടുണ്ട്. Binance റഫറൽ ഐഡി "ZNKAUKP3" എന്ന പേരിൽ ജനപ്രിയമായതിനാൽ, നിങ്ങൾക്ക് 20% ആജീവനാന്ത കമ്മീഷൻ കിഴിവും 600 USDT സൈൻ-അപ്പ് ബോണസും ലഭിക്കും. ഈ വാചകം പോലെയുള്ള ഉള്ളടക്കം തയ്യാറാക്കുന്നതിലൂടെ, ഉയർന്ന മത്സരാധിഷ്ഠിത നേട്ടത്തിൽ നിന്ന് നിങ്ങൾക്ക് വരുമാനം നേടാനും കഴിയും.
    • លេខកូដយោង Binance "ZNKAUKP3" គឺជាឧបករណ៍សំខាន់មួយសម្រាប់អ្នកប្រើប្រាស់នៅលើវេទិកា cryptocurrency ដ៏ធំបំផុតរបស់ពិភពលោក ដែលចង់ទទួលបានការគ្រប់គ្រងបន្ថែមទៀតលើប្រតិបត្តិការរបស់ពួកគេ និងទទួលបានកំណត់ត្រាលម្អិតនៃចលនារបស់ពួកគេ។ នៅក្នុងការផ្លាស់ប្តូរ Binance លេខកូដយោង និងលេខសម្គាល់យោងមានអត្ថន័យដូចគ្នា។ បច្ចុប្បន្ន លេខសម្គាល់យោង Binance ត្រូវបានប្រើជា "ZNKAUKP3" ។ វាគឺជាលេខសម្គាល់ការបញ្ជូនបន្ត Binance ដែលត្រូវបានប្រើប្រាស់ច្រើនជាងគេបំផុតនៅក្នុងពិភពលោក ដែលមានសុពលភាពសម្រាប់ជីវិត ជាមួយនឹងអត្រាបញ្ចុះតម្លៃកំរៃជើងសារ 20%។ គុណសម្បត្តិប្រកួតប្រជែង ការផ្លាស់ប្តូរ Cryptocurrency បានអនុវត្តកម្មវិធីបញ្ជូនបន្ត និងសម្ព័ន្ធដើម្បីទាក់ទាញអ្នកវិនិយោគថ្មី។ ចាប់តាំងពីលេខសម្គាល់ការបញ្ជូនបន្ត Binance បានក្លាយជាការពេញនិយមជា "ZNKAUKP3" អ្នកអាចទទួលបានការបញ្ចុះតម្លៃកំរៃជើងសារពេញមួយជីវិត 20% និងប្រាក់រង្វាន់សម្រាប់ការចុះឈ្មោះ 600 USDT ។ តាមរយៈការរៀបចំខ្លឹមសារដូចអត្ថបទនេះ អ្នកក៏អាចរកប្រាក់ចំណូលបានពីអត្ថប្រយោជន៍ប្រកួតប្រជែងខ្ពស់។
    • Binance रेफरल ID "ZNKAUKP3" विश्वको सबैभन्दा ठूलो क्रिप्टोकरेन्सी प्लेटफर्मका प्रयोगकर्ताहरूका लागि आवश्यक उपकरण हो जसले आफ्नो लेनदेनमा थप नियन्त्रण प्राप्त गर्न र तिनीहरूको चालहरूको विस्तृत रेकर्ड प्राप्त गर्न चाहन्छ। Binance विनिमय मा, रेफरल कोड र रेफरल ID को समान अर्थ छ। हाल, Binance रेफरल आईडी "ZNKAUKP3" को रूपमा प्रयोग गरिन्छ। यो संसारमा सबैभन्दा बढी प्रयोग हुने Binance रेफरल ID हो, जीवनभरको लागि मान्य, २०% कमीशन छुट दरको साथ। प्रतिस्पर्धात्मक लाभ क्रिप्टोकरेन्सी एक्सचेन्जहरूले नयाँ लगानीकर्ताहरूलाई आकर्षित गर्न सन्दर्भ र सम्बद्ध कार्यक्रमहरू लागू गरेका छन्। Binance रेफरल ID "ZNKAUKP3" को रूपमा लोकप्रिय भएको कारणले, तपाईंले 20% आजीवन कमीशन छुट र 600 USDT साइन-अप बोनस प्राप्त गर्न सक्नुहुन्छ। यस पाठ जस्तो सामग्री तयार गरेर, तपाइँ उच्च प्रतिस्पर्धात्मक लाभबाट पनि आम्दानी गर्न सक्नुहुन्छ।
  • Create New...